HISTORY & DEVELOPENT OF HKMTR

1. 0

2. HONG KONG MASS TRANSIT RAILWAY
A SUCCESS STORY
PRESENTED
BY
Ir Thomas S K LAI
CEng, MICE, MIStructE, MHKIE
Chairman HKIE UK CHAPTER
1
75th ANNIVERSARY OF THE HONG KONG POLYTECHNIC UNIVERSITY ©

3. BIRTH & GROWTH OF
HONG KONG MASS TRANSIT RAILWAY
UP TO DATE
2

4. BEAUTIFUL HONG KONG
3

5. HONG KONG
• LOCATED AT THE PEARL RIVER
ESTUARY ON THE SOUTHERN
COAST OF CHINA
4

6. VICTORIA HARBOUR
5

7. August 2003 77
HARBOUR FRONT
6

8. STAR FERRY
August 2003 66
7

9. CHALLENGING BIRTH
8

10. CULTURAL REVOLUTION
• In 1966 – CULTURAL REVOLUTION
RAGING IN CHINA
• SPILLED OVER TO HONG KONG
• FARE INCREASE IN STAR FERRY
• RIOTS
• SERIOUS DISRUPTION
TO PUBLIC TRANSPORT
9

11. CULTURAL REVOLUTION
HONG KONG IN
CRISIS
10

12. CULTURAL REVOLUTION
HONG KONG IN
CRISIS
危 机
• Danger Opportunity
11

13. PLB
PLB
PUBLIC LIGHT BUS
12

14. PLB
• AVAILABLE - FREQUENT SERVICE
• CONVENIENT - PASSENGERS HOP ON
AND OFF ANYWHERE ALONG ROUTE
• PREMIUM FOR SERVICE
• POPULAR WITH PASSENGERS
13

15. HONG KONG GOVERNMENT
•VIABILITY OF UNDERGROUND RAILWAY SYSTEM
•CONFIRMED BY CONSULTANT‟S FEASIBILITY STUDY
•1975 - MASS TRANSIT PROVISIONAL AUTHORITY
•1976 - MASS TRANSIT RAILWAY CORPORATION
MTRC
14

16. MTRC
THE MASS TRANIST RAILWAY
ORDINANCE
15

17. MTRC
• WHOLLY GOVERNMENT
OWNED ENTERPRISE
HUTCHINSON HOUSE - RENTED
16
OFFICES

18. MTRC
• MANDATED TO BUILD AND
OPERATE AN UNDERGROUND
RAILWAY SYSTEM
• ON PRUDENT COMMERCIAL
PRINCIPLES
• HAVING REGARD TO THE
REASONABLE REQUIREMENTS OF
THE PUBLIC TRANSPORT SYSTEM
OF HONG KONG
17

19. MTRC
HONG KONG GOVERNMENT PUTS IN
INITIAL EQUITY (HK$ 800 M)
MTRC BORROWS REST IN OPEN MONEY
MARKET
18

20. PREFERRED SYSTEM
19

21. INITIAL SYSTEM
LETTER OF INTENT SIGNED WITH JAPANESE
CONSORTIUM FOR THE INITIAL SYSTEM
(20 km) AS A SINGLE DESIGN & BUILD CONTRACT
20

22. INITIAL SYSTEM
OIL CRISIS
CONSORTIUM WITHDREW
21

23. MODIFIED INITIAL SYSTEM
MIS
(15.6 km)
25 CIVIL & 10 E&M
DESIGN AND BUILD
CONTRACTS
22

24. MIS
GOVERNMENT SET UP MASS
TRANSIT ADVISER (MTA) TO:
• CO-ORDINATE BETWEEN MTRC &
GOVERNMENT DEPARTMENTS
• FACILITATE TIMELY POLICY MAKING
& ISSUE RESOLUTION
23

25. MIS
DIFFERENT LEVEL OF COMMITTEES & WORKING
GROUPS:
• GOVERNMENT / MTR LIAISON COMMITTEE
• GOVERNMENT / MTR PUBLICITY COMMITTEE
• METRO PUBLIC RELATIONS POLICY GROUP
24

26. MIS
• LAND ACQUISITION CO-ORDINATION COMMITTEE (LACC)
• STATION AND TRANSPORT INTEGRATION COMMITTEE
(STIC)
• SAFETY AND SECURITY CO-ORDINATION COMMITTEE
(SSCC)
• TRAFFIC MAMAGEMENT GROUP (TMG)
• UTILITIES CO-ORDINATION GROUP (UCG)
25

27. INSPECTORATE OF RAILWAY
(UK)
• APPOINTED BY GOVERNMENT AS
ADVISER ON RAILWAY SAFETY
• PROVIDES INPUT DURING DESIGN
• INSPECTS RAILWAY SYSTEM
• RECOMMENDS OPENING
26

28. MIS
IMPORTANCE OF PUBLIC RELATIONS
• OBSERVATION WINDOWS ON HOARDINGS
• GROWING FOR YOU
27

29. MIS
IMPORTANCE OF PUBLIC RELATIONS
• CEREMONIES OF COMMENCEMENT
& COMPLETION OF WORKS
28

30. MIS
IMPORTANCE OF PUBLIC RELATIONS
PARTICIPANTS (STAKEHOLDERS) INCLUDE:
CORPORATION REPRESENTATIVES
CONTRACTORS
CONSULTANTS
GOVERNMENT OFFICIALS
LEGISLATORS
DISTRICT COUNCILLORS
LOCAL DIGNITARIES
29

31. MIS
IMPORTANCE OF PUBLIC RELATIONS
• TEAM BUILDING
• PUBLICISING PROGRESS OF WORKS
30

32. MIS
WORK STARTED
• NOVEMBER
1975
GROUNDBREAKING CEREMONY
BY CHAIRMAN SIR NORMAN THOMPSON
31
AT KWUN TONG

33. MIS
• FIRST CHAIRMAN – SIR NORMAN THOMPSON
 DIRECT ACCESS TO THE GOVERNOR
 SIMPLE & CLEAR MESSAGES
• PROJECT MANAGER – HONG KONG &
SHANGHAI BANK HQ BUILDING
32

34. MIS
FIRST M.D. – PROF TONY RIDLEY
M.D. – LONDON UNDERGROUND
MAJOR IMPROVEMENT TO THE SYSTEM
CO-M.D. - EUROTUNNEL
PROFESSOR – IMPERIAL COLLEGE LONDON
ICE PRESIDENT
33

35. MIS
• GENERAL PUBLIC
– EXCITEMENT
– EXPECTATION
– DETERMINATION
34

36. MIS
• GENERAL PUBLIC
HIGH DEGREE OF TOLERENCE
&
CO-OPERATION
35

37. MIS
PROJECT MANAGEMENT APPROACH:
• QUICK DECISION-MAKING
• REGULAR MONITORING OF EFFECT OF
CHANGES ON BUDGET & PROGRAMME
• APPROPRIATE DELEGATION OF AUTHORITY
• SHARE RISKS & BENEFITS WITH
CONTRACTORS
36

38. MIS
• BASED ON PROVEN TECHNOLOGY
• PROJECT MOTTO:
IF IT IS ESSENTIAL,
GET ON WITH IT.
IF IT IS DESIRABLE,
FORGET IT.
37

39. MIS
GOVERNMENT
COMMUNITY MTRC
UNITY IN PURPOSE
38

40. MIS
GROUND CONDITIONS
 ALLUVIAL DEPOSITS
 GRANITE (VARYING DEGREE OF
DECOMPOSITION)
 HARD ROCK
39

41. MIS
STATION WALL CONSTRUCTION
40

42. MIS
STATION CONSTRUCTION
41

43. MIS
INSITU HORSESHOE TUNNEL
42

44. MIS
PRECAST CONCRETE TUNNEL
LINING
43

45. MIS
SGI TUNNEL LINING
44

46. MIS
NGAU TAU KOK STATION &
VIADUCT
45

47. MIS
KOWLOON BAY DEPOT
46

48. MIS
ADMIRALTY STATION
EXCAVATION
47

49. MIS
IMMERSED TUBE CASTING
48

50. MIS
IMT
49

51. MIS
• FROM KWUN TONG TO CENTRAL
KWUN TONG TO SHEK KIP MEI
– OPERATIONAL ON 1 OCTOBER 1979
50

52. MIS
• FROM KWUN TONG TO CENTRAL
KWUN TONG TO TSIM SHA TSUI
– OPERATIONAL ON 31 DECEMBER 1979
51

53. MIS
• FROM KWUN TONG TO CENTRAL
KWUN TONG TO CENTRAL
– OPENED BY PRINCESS ALEXANDRA
ON 12 FEBRUARY 1980
52

54. MIS
• FROM KWUN TONG TO CENTRAL
ON TIME AND WITHIN BUDGET
53

55. MIS
ESTIMATED COST IN 1975 HK$ B
(INCL. 7% p.a. ESCALATION TO 1980) 5.8
CONSTRUCTION COST 5.6
INCL. INTEREST AND FINANCE COST S 7.3
54

56. MIS
• NO SMOKING
• NO EATING
• NO DRINKING
• NO MUSIC/RADIO
55

57. MIS
• CLEAN
• QUIET
• EFFICIENT
• RELIABLE
DAVID BAARACLOUGH
• AIR-CONDITIONED
FORMER OPERATIONS DIRECTOR
56

58. MIS
SUCCESS
57

59. GROWTH
58

60. FIRST HEADQUARTERS BUILDING
59

61. TSUEN WAN LINE
BUILDING UP THE
COMPANY
ERIC BLACK
SECOND MD
60

62. TSUEN WAN LINE
61

63. TWL
• ENGINEER‟S DESIGN
• CONTRACTOR‟S ALTERNATIVE
PROPOSALS CONSIDERED &
ADOPTED
TSUEN WAN DEPOT
&
LUK YEUNG SUN CHUEN DEVELOPMENT
62

64. TWL
• SET UP STRONG IN-HOUSE
PROFESSIONAL PROJECT
MANAGEMENT TEAM
• HANDS-ON STYLE
LAI KING TO KWAI FONG
CROSS-OVER
63

65. TWL
• PROJECT TEAM RESPONSIBLE FOR:
 FEASIBLITY STUDY
 PROPOSAL TO GOVERNMENT
 SPECIFICATION
 APPOINTMENT OF CONSULTANTS
 TENDERING
 CONTRACT AWARD
 DESIGN MANAGEMENT
 CONSTRUCTION MANAGEMENT
 TESTING & COMMISSIONING
 HANDOVER TO OPERATIONS
64

66. TWL
• TSUEN WAN LINE
– TSUEN WAN
TO CENTRAL
– OPERATIONAL
10 May 1982
(AHEAD OF PROGRAMME)
65

67. TWL
ESTIMATED COST IN 1978 HK$ B
(INCL. ESCALATION TO 1982) 4.1
CONTRACT COSTS 3.7
CORPORATION COST
CONSULATANTS‟ FEES
LAND ACQUISITION
COMPENSATION 0.7
FINAL CONSTRUCTION COST 3.9
INCL. INTEREST AND FINANCE COSTS 5.3
66

68. ISL
67

69. ISL
• ISLAND LINE
– CHAI WAN TO
ADMIRALTY
31 MAY 1985
– CHAI WAN TO
SHEUNG WAN
23 MAY 1986
68

70. ISL
ESTIMATED TOTAL COSTS HK$ B
AT 1986 PRICES 10.9
(EXCL. INTEREST AND FINANCE
COSTS)
FINAL COST 10.0
INCL. INTEREST & 11.9
FINANCE COSTS
WILLIAM GREIG
FORMER PROJECTS DIRECTOR
69

71. MORE CHALLENGING TIME
70

72. ISL
• CHAIRMAN & CEO :
SIR WILFRID NEWTON
 STRENGTHENED CORPORATION‟S FINANCE
 LAID SOUND FOUNDATION FOR FUTURE
GROWTH
 RE-ORGANISED HONG KONG STOCK
EXCHANGE AFTER MARKET COLLAPSE
 BOARD MEMBER OF HONG KONG &
SHANGHAI BANKING CORPORATION (HSBC)
 HON. FELLOW - HKIE
 CHAIRMAN – LONDON TRANSPORT
OVERSAW JUBILEE LINE EXTENSION
71
CONSTRUCTION

73. MTR
ARRIVAL & GROWTH OF MTR
COINCIDE WITH :
TRANSFORMATION OF HONG KONG
FROM REGIONAL CITY
TO INTERNATIONAL FINANCIAL CENTRE
72

74. HONG KONG LEASE
• 99-YEAR LEASE EXPIRES ON 1 JULY 1997
• GOVERNMENT DEPENDS ON SALE OF
LAND LEASES FOR REVENUE
• NEEDS TO KNOW ITS FUTURE
• NEGOTIATION BETWEEN LONDON &
BEIJING
73

75. HONG KONG LEASE
BRITISH PRIME MINISTER
VISITED BEIJING
OFFERED TO EXCHANGE
SOVEREIGNTY FOR
ADMINSTRATION
MARGARET THATCHER
74

76. HONG KONG LEASE
OFFER REJECTED BY CHINA
75

77. HONG KONG LEASE
BUT AGREED TO:
• SET UP JOINT LIAISON COMMITTEE (JLC)
• CONTINUE NEGOTIATION
• MAINTAIN STABILITY & PROSPERITY OF
HONG KONG
76

78. HONG KONG LEASE
• NEGOTIATION NOT GOING WELL
• UNCERTAINTY
77

79. HONG KONG LEASE
• JITTERY & GLOOMY
• INVESTMENTS PUT ON HOLD
• STOCK MARKET CRASH
• PROPERTY BUBBLE BURST
78

80. HONG KONG LEASE
HONG KONG DOLLAR PLUNGES
FROM AROUND HK$ 6 = US$ 1
TO
OVER HK$ 9 = US$ 1
79

81. HONG KONG LEASE
PEOPLE RUSH TO SUPERMARKET
TO BUY :
RICE
80

82. HONG KONG LEASE
PEOPLE RUSH TO SUPERMARKET
TO BUY :
RICE &
BABY‟S POWDERED MILK
81

83. HONG KONG LEASE
• CURRENCY PEG
HK$ 7.8 = US$ 1
82

84. HONG KONG LEASE
• CALM THE CITY
• STOP PANIC
83

85. HONG KONG LEASE
• IN 1984 BRITAIN & CHINA SIGNED
JOINT DECLARATION ON FUTURE OF
HONG KONG
• CHINA TO REGAIN FULL SOVEREIGNTY
ON 1 JULY 1997
August 2003 85
84

86. HONG KONG LEASE
PROMISE TO HONG KONG PEOPLE
• HONG KONG PEOPLE GOVERN HONG
KONG
• WITH HIGH DEGREE OF AUTONOMY
• ONE COUNTRY TWO SYSTEMS
• NO CHANGE FOR 50 YEARS
85

87. HONG KONG LEASE
•ENSHRINED IN •LODGED WITH
BASIC LAW UNITED NATIONS
86

88. HONG KONG LEASE
• CURRENCY PEG
HK$ 7.8 = US$ 1
• REMAINS TO THIS DAY
87

89. MTRC
• BORROWING IN US$
• REVENUE IN HK$
• ADVERSE IMPACT BY
HIGH INTEREST RATE (12%)
DEVALUATION
88

90. MTRC
• HONG KONG
GOVERNMENT TO
INCREASE EQUITY
(HK$ 2.5 B ISSUED, 2.5 B
ON CALL )
• SHIFT BORROWING TO BE
HK$ DENOMINATED
ROGER MOSS
FORMER FINANCE DIRECTOR
89

91. MTRC
SECURED CREDIT RATING FROM
• MOODY
• S&P
ROAD SHOW TO TAP INTERNATIONAL BOND MARKET
• YANKEE BOND
• SAMURAI BOND
90

92. MTRC
IN NO POSITION TO FINANCE NEW
EXTENSIONS ON ITS OWN
EXECUTIVE COMMITTEE
91

93. MTRC
• IN NO POSITION TO FINANCE NEW
EXTENSIONS ON ITS OWN
92

94. EASTERN HARBOUR CROSSING
93

95. EHC
• Build Own Transfer PROJECT BY OTHERS
• LINKING KWUN TONG TO QUARRY BAY
• THIRD CROSS HARBOUR TUNNEL
CARRYING ROAD AND RAILWAY
• RAIL PORTION LEASED TO MTRC
EASTERN HARBOUR CROSSING
ENTRANCE
94

96. EHC
MTRC PAYS SEMI-ANNUAL INSTALMENTS FOR
18½ YEARS TOTALLING HK$ 2.6 B
OTHER CAPITAL INVESTMENT
INCL. ROLLING STOCKS 0.365 B
WILLIAM DONALD
FORMER OPERATIONS
95
DIRECTOR

97. EHC
OPENED ON 1 OCTOBER 1989
PRINCE CHARLES SPEAKING TO
THOMAS LAI
96

98. AFTER JOINT DECLARATION
• UNCERTAINTY REMOVED
• CONFIDENCE RETURNED
LIPPO CENTRE
97

99. KAI TAK AIRPORT
CHECKERBOARD IN SIGHT
98

100. KAI TAK AIRPORT
STEADY AS SHE GOES
99

101. KAI TAK AIRPORT
DO YOUR WINDOW SHOPPING
BEFORE YOU LAND
100

102. KAI TAK AIRPORT
SEE....I LAND IT ON THE ROOF
101

103. KAI TAK AIRPORT
HARD RIGHT TURN AND DIVE
102

104. KAI TAK AIRPORT
BUT LANDING ON THE
RUNWAY...... IS NOT ALWAYS
103
EASY

105. KAI TAK AIRPORT
SOMETIMES.... ENDED UP IN THE
WATER
104

106. AIRPORT CORE PROJECTS
RELOCATE AIRPORT FROM KAI TAK TO CHEK LAP KOK
105

107. AIRPORT CORE PROJECTS
• APPROVED BY BEIJING
& LONDON
106

108. AIRPORT CORE PROJECTS
• OBJECTIVES:
– TO STIMULATE ECONOMY
– TO FACILITATE FUTURE GROWTH
– TO ELIMINATE AVIATION HAZARD
– TO BE COMPLETED IN TIME FOR
HANDOVER
107

109. ACP
• AIRPORT AT CHEK LAP KOK
• TSING MA BRIDGE
• LANTAU & AIRPORT RAILWAY
108

110. ACP
• KAP SHUI MUN BRIDGE
• TING KAU BRIDGE
• HIGHWAYS
• RECLAMATIONS
• THIRD CROSS HARBOUR ROAD
TUNNEL (WESTERN HARBOUR CROSSING)
109

111. ACP
• HK$ 127 BILLION £ 10 BILLION
110

112. ACP
CHINA‟S CONCERN:
• ROSE GARDEN PROJECT
• EMPTY TREASURY
• HIGH DEBT
111

113. ACP
AGREEMENT REACHED TO:
• LEAVE HK$ 25 B MIN. IN TREASURY
• CAP GOVERNMENT BORROWING
AT HK$ 5 B UNLESS AGREED
OTHERWISE
• CAP ANNUAL LAND SALE
NO MORE THAN 50 ha /year
112

114. ACP
ESSENTIAL TO HAVE CHINA‟S AGREEMENT AND SUPPORT
TO ASSURE INVESTORS
WRANGLING OVER FINANCIAL DATA DELAYED PROJECT
START
HAMISH MATHERS
113
FORMER CHAIRMAN

115. ACP
JACK SO CHAK KWONG
FORMER CHAIRMAN & CEO
114

116. ACP
AT TIME OF HANDOVER
ON 30 JUNE/1 JULY 1997
CHINESE PRESIDENT ARRIVED LAST BRITISH GOVERNOR LEFT
BY PLANE
AT THE NEW AIRPORT ON ROYAL YACHT BRITANNIA
JIANG JI MEN LORD PATTEN
115
•

117. ACP
PROJECT COMPLETED IN 1998
Ir DOUGLAS OAKERVEE
PROJECT DIRECTOR HKIA
FORMER MTR PROJECT MANAGER
ICE PRESIDENT
116

118. HONG KONG INTERNATIONAL
AIRPORT
117

119. TSING MA BRIDGE
(ROAD + RAIL)
118

120. LANTAU & AIRPORT LINE
119

121. LAL
AIRPORT EXPRESS LINE
(AEL)
AIRPORT – HONG KONG
23 MINUTES JOURNEY
IN-TOWN-CHECK-IN
120

122. LAL
TUNG CHUNG LINE
(ON SHARED TRACK WITH AEL)
TUNG CHUNG - HONG KONG
COMMUTER LINE
ALSO PROVIDES RELIEF
TO NATHAN ROAD CONGESTION
121

123. LAL
FINANCIAL SUPPORT AGREEMENT (FSA)
WITH GOVERNMENT
• HK$ 23.7 B ADDITIONAL EQUITY BY
GOVERNMENT
• 62 ha LAND FOR DEVELOPMENT
• DEFERRAL OF DIVIDENDS UNTIL 2001
• REVENUE DEFICIENCY PAYMENTS
(80% FOR NO MORE THAN 2 YEARS
IF DELAYED BY OTHERS)
122

124. ACP
EXTENSIVE APPLICATION OF
VALUE ENGINEERING
INTRODUCE PARTNERING
RUSSELL BLACK
FORMER PROJECTS DIRECTOR
123

125. TUNG CHUNG LINE
NO MORE SLIDING SEATS
124

126. AIRPORT EXPRESS
• SPACIOUS SEATING
• PLEASANT AMBIENCE
• BUSINESS CLASS
COMFORT
FROM PLANE,
THROUGH TRAIN,
TO HOTEL AEL TRAIN
125

127. LAL
TCL
OPERATIONAL ON 22 JUNE 1998
AEL
OPERATIONAL ON 6 JULY 1998
126

128. LAL
HK$ B
PROJECT COST 35.1
(INCLUDING CAPITALISED INTEREST)
FINANCED BY:
EQUITY 23.7
DEBT 11.4
127

129. CONSOLIDATION
128

130. TSEUNG KWAN O LINE
129

131. TKL
• TSEUNG KWUN O LINE
– COMMUTER LINE
– FROM PO LAM TO NORTH POINT
– OPERATIONAL ON 17 AUGUST 2002
130

132. TKL
I st JULY – 1997
ASIAN FINANCIAL CRISIS
MAJOR REVIEW OF THE
PROJECT
131

133. TKL
INITIAL CAPITAL COST ESTIMATE HK$ B
INCL. CAPITALISED INTEREST 30.5
FINAL COST 16.0
HANG HAU STATION
132

134. TKL
NORTH POINT CAVERN
133

135. DISNEYLAND RESORT LINE
134

136. DRL
• DISNEYLAND RESORT
LINE
– FROM SUNNY BAY TO
DISNEYLAND
– FULLY AUTOMATIC
OPERATION
– OPERATIONAL ON
12 SEPTEMBER 2005
135

137. ASIAWORLD-EXPO STATION
136

138. ASIAWORLD-EXPO STATION
AIR STATION –
ASIAWORLD-EXPO
OPERATIONAL ON
20 DECEMBER 2005
137

139. NGONG PING 360
138

140. NGONG PING 360
139

141. NGONG PING 360
140

142. NGONG PING 360
AIRPORT ISLAND STATION TUNG CHUNG TERMINAL
141

143. NGONG PING 360
• MATERIAL DELIVERY
– HELICOPTERS
– MULES
142

144. NGONG PING 360
SCHEDULED OPENING 24 JUNE 2006
OPERATIONAL 18 SEPT 2006
OFFICIAL OPENING 9 NOV 2006
143

145. NGONG PING 360
OPERATION SUSPENDED 11 JUNE 2007
OPERATION RESUMED 31 DEC 2007
SUBSIDIARY COMPANY SET UP TO
MANAGE & OPERATE THE SYSTEM
144

146. SUCCESS PROFILERATING
145

147. MTRC
 PROJECT MANAGEMENT
 RAILWAY OPERATION
 FINANCIAL EXPERTISE
 TRAINING & DEVELOPMENT
 PROPERTY
 AUTOMATIC FARE COLLECTION
146

148. MTRC
• INVEST HEAVILY IN STAFF TRAINING &
DEVELOPMENT
• CORE VALUES :
 CUSTOMER SERVICE
 RESPECT FOR THE INDIVIDUAL
 ON TIME AND WITHIN BUDGET
147

149. MTRC
PROVIDES PROFESSIONAL
TRAINING SERVICES TO
OTHER RAILWAYS IN:
– MAINLAND CHINA
PHILP GAFFNEY
FORMER OPERATIONS DIRECTOR
– SOUTHEAST ASIA
LEN TURK
FORMER LEGAL DIRECTOR &
COMPANY SECRETARY
PATRICK MAULE
FORMER PERSONNEL DIRECTOR
148

150. PROPERTY DEVELOPMENT
& MANAGEMENT
MAJOR GOVERNMENT POLICY ISSUES
TRANSPORT HOUSING
149

151. PROPERTY DEVELOPMENT
& MANAGEMENT
• GOVERNMENT ALLOCATE LAND AT
FULL MARKET VALUE ALONG THE
RAILWAY FOR DEVELOPMENT
150

152. PROPERTY DEVELOPMENT
& MANAGEMENT
• MAJOR & REPUTABLE
PROPERTY DEVELOPER
AND MANAGER IN
TOWN
• JOINT VENTURES
– RESIDENTIAL
– RETAIL
– OFFICES
– HOTEL 151

153. PROPERTY DEVELOPMENT
& MANAGEMENT
• SUBSTANTIAL CONTRIBUTION
TOWARDS COST OF RAILWAY
• CAPTURED PASSENGERS
(FORMING PART OF 2.4 M DAILY
RIDERSHIP)
152

154. PROPERTY DEVELOPMENT
& MANAGEMENT
PROCEEDS FROM DEVELOPMENTS
HELP TO:
• KEEP FARES AT REASONABLE
LEVEL
• MAINTAIN & EXTEND RAIL
NETWORK
153

155. PROPERTY DEVELOPMENT
& MANAGEMENT
154

156. PROPERTY DEVELOPMENT
& MANAGEMENT
TELFORD GARDEN
155

157. PROPERTY DEVELOPMENT
& MANAGEMENT
PARK VIEW
156

158. PROPERTY DEVELOPMENT
& MANAGEMENT
CENTRAL STATION RETAIL
157

159. PROPERTY DEVELOPMENT
& MANAGEMENT
TELFORD PLAZA
158

160. PROPERTY DEVELOPMENT
& MANAGEMENT
MARITIME SQUARE
159

161. PROPERTY DEVELOPMENT
& MANAGEMENT
ELEMENTS 160

162. 2 INTERNATIONAL FINANCE CENTRE
2IFC
161

163. UNION SQUARE
162

164. INTERNATIONAL COMMERCE CENTRE
• 118 FLOORS
• 490 METRES HIGH
• THIRD TALLEST
BUILDING IN THE
WORLD
ICC
163

165. ICC
ICC
164

166. GATEWAY TOWERS
165

167. CHINA – BEIJING
• PROPERTY OPEARATIONS
& MANAGEMENT
GINZA MALL
166

168. PROPERTY DEVELOPMENT
& MANAGEMENT
AS AT END 2011:
Investment properties
Hong Kong: 12 shopping malls + 18 floors at 2 IFC
Shops 226,622 sq.m )
Offices 41,000 sq.m ) 279,424 sq.m
Other use 11,202 sq.m )
Mainland China: Ginza Mall
Shops 18,398 sq.m
Managed properties:
• 86,162 residential units in Hong Kong
167
• 744,214 sq.m commercial properties in Hong Kong

169. AUTOMATIC FARE COLLECTION
• ELECTRO-MAGNETIC CARD
• STORED VALUE CARD
• CONTACTLESS SMART CARD
ROB NOBLE
FORMER MARKETING & PLANNINGDIRECTOR 168

170. AUTOMATIC FARE COLLECTION
ELECTRO-MAGNETIC CARD
• PLASTIC
• RE-USABLE
• NO LITTER
• ISSUED BY MACHINE / HAND
• FIXED VALUE
• ELECTRO-MAGNETIC
• SINGLE JOURNEY
169

171. MIS
• NO SMOKING
• NO EATING
• NO DRINKING
• NO MUSIC/RADIO
• NO TICKET FLICKING 170

172. AUTOMATIC FARE COLLECTION
STORED VALUE
• PLASTIC
• RE-USABLE
• NO LITTER
• ISSUED BY MACHINE / HAND
• FIXED VALUE
• ELECTRO-MAGNETIC
• MULTIPLE JOURNEYS
• UNRESTRICTED LAST JOURNEY
• ADVANCE REVENUE COLLECTION
• REDUCTION IN CASH HANDLING
171

173. AFC
OCTOPUS CONTACTLESS SMART CARD
• PLASTIC
• ISSUED BY MACHINE / HAND
• RE-USABLE
• NO LITTER
• MULTIPLE JOURNEYS
• ADVANCE REVENUE
• RADIO FREQUENCY IDENTIFICATION (RFID)
• NO CONTACT AT TURNSTILE
• TOP UP VALUE
• FURTHER REDUCTION IN CASH HANDLING
• ACCEPTED BY BUSINESS PARTNERS
172

174. OCTOPUS CONTACTLESS SMART CARD
• RELIABLE TICKETING
• LABOUR SAVING
• DATA FOR:
OPERATIONAL PLANNIN INCLUDING PRICING
173

175. OCTOPUS CONTACTLESS SMART CARD
• FORERUNNER OF:
• EZ-LINK – SINGAPORE
• OYSTER CARD – LONDON
• EASYCARD - TAIPEI
174

176. OCTOPUS CONTACTLESS SMART CARD
OTHER USES:
 PUBLIC TRANSPORTS
 CAR PARKS
 ACCESS CONTROL TO BUILDINGS
 CONFIRMATION OF STUDENTS‟
ATTENDANCE AT SCHOOL
175

177. OCTOPUS CONTACTLESS
SMART CARD
AS AT END OF JUNE 2012
• 12.1 MILLION DAILY TRANSACTIONS
• HK$ 123.9 MILLION PER DAY
• ADOPTED BY OVER 5000 SERVICE PROVIDERS
176

178. MTR CORPORATION
AN OUTSTANDINGLY SUCCESSFUL
ENTERPRISE
177

179. MTR CORPORATION LTD
LISTED ON THE HONG KONG
EXCHANGE
ON 5 OCTOBER 2000
178

180. MERGER WITH KCRC
179

181. MERGER
• HONG KONG GOVERNMENT ANNOUNCED
MERGER PROPOSAL BETWEEN MTRCL & KCRC
ON 11 APRIL 2006
180

182. MERGER
• KCRC
• ORIGINALLY A GOVERNMENT DEPARTMENT
• TURNED INTO A WHOLLY GOVERNMENT
OWNED PUBLIC CORPORATION
• CHARGED TO OPERATE AND DEVELOP
DOMESTIC, CROSS-BOUNDARY AND INTERCITY
RAILWAY SERVICES
• IN A PRUDENT COMMERCIAL MANNER
181

183. MERGER
KCRC
• OPERATES:
– EAST RAIL
– WEST RAIL
– LIGHT RAIL
– INTERCITY TO
GUANGZHOU
– FREIGHT TO
INTERIOR OF
MAINLAND CHINA
182

184. MERGER
KCRC
• PROPERTY DEVELOPMENT
&
MANAGEMENT
183

185. MERGER
• HONG KONG GOVERNMENT ANNOUNCED MERGER
PROPOSAL BETWEEN MTRCL & KCRC ON 11 APRIL 2006
• MTRCL SIGNED MEMORANDUM OF UNDERSTANDING
(MOU) WITH HK GOVERNMENT
MICHAEL TIEN DR RAYMOND CH'IEN
FORMER CHAIRMAN KCRC CHAIRMAN MTRCL
184

186. MERGER
MOU PROVIDES FOR:
• REDUCED FARE
• ABOLITION OF SECOND BOARDING CHARGE
• FURTHER DISCOUNTS FOR MEDIUM & LONG DISTANCE
JOURNEYS
• INTRODUCTION OF AN OBJECTIVE, TRANSPARENT &
PREDICTABLE FARE ADJUSTMENT MECHANISM (FAM)
• FULLY INTEGRATED INTERCHANGE STATIONS FOR
SHATIN TO CENTRAL LINK
• IMPROVEMENT ON EXISTING INTERCHANGE
ARRANGEMENTS IN THE SHORT TERM
• PROVISION OF SEAMLESS INTERCHANGE
ARRANGEMENTS WITH FUTURE EXTENSIONS
185

187. MERGER
MOU PROVIDES FOR
• JOB SECURITY FOR ALL FRONTLINE STAFF
186

188. MERGER
DEAL TERMS
• PROVIDE A BALANCED PACKAGE FAIR TO ALL
STAKEHOLDERS
187

189. MERGER
DEAL TERMS
• ACQUISITION OF RENEWABLE OPERATIONAL RIGHT OF
KCR FOR 50 YEARS
– UPFRONT PAYMENT OF HK$4.25 BILLION FOR SERVICE
CONCESSION AND TO PURCHASE CERTAIN RAIL ASSETS
– HK$7.79 BILLION FOR A PROPERTY PACKAGE
– FIXED ANNUAL PAYMENT OF HK$750 MILLION
– VARIABLE ANNUAL PAYMENT BASED ON REVENUES
GENERATED FROM KCR‟S RAIL AND RAIL-RELATED
OPERATIONS
• EXPECTED TO BE EPS & NPV ACCRETIVE FOR MTRCL
188

190. MERGER
MEET THE GOVERNMENT‟S FIVE PARAMETERS
1. ADOPTION OF A MORE OBJECTIVE AND TRANSPARENT
FAM
2. ABOLITION OF THE SECOND BOARDING CHARGE &
REVIEW FARE STRUCTURE TO REDUCE FARES
3. EARLY RESOLUTION OF INTERCHANGE ARRANGEMENTS
FOR RAIL PROJECTS UNDER PLANNING, NOTABLY THE
SHATIN TO CENTRAL LINK
4. ENSURE JOB SECURITY FOR FRONTLINE STAFF
5. PROVISION OF SEAMLESS INTERCHANGE
ARRANGEMENTS IN THE LONG TERM
189

191. MERGER
BENEFITS
• SYNERGY
• ECONOMIES OF SCALE
• COST EFFICIENCY
• INTEGRATED RAIL SYSTEM
190

192. MERGER
TRANSITION - ONE YEAR OR MORE
SHARE PRICE JUMPED 5.3%
(FROM HK$19 TO 20)
RAIL MERGER BILL APPROVED BY LegCo
on 8 JUNE 2007
OUTLOOK - BRIGHT
191

193. MERGED
• COMPLETED ON
2 DECEMBER
2007
• 香港鐵路有限公司
ONE COMPANY ONE TEAM
192

194. MERGED
193

195. MERGED
• 211 Km ROUTE LENGTH
• 82 STATIONS
• 9 COMMUTER LINES
• AIRPORT EXPRESS
• LIGHT RAIL
• DISNEYLAND RESORT LINE
• FEEDER BUS SERVICE
• CABLE CAR
• INTERCITY PASSENGER SERVICE
• INTERCITY FREIGHT SERVICE
• 3 MILLION DAILY PASSENGERS
194

196. MERGED
ONE COMPANY ONE TEAM
STAFF INTEGRATION W ILLIAM CHAN
FORMER HUMAN RESOURCES DIRECTOR
195

197. MTR CORPORATION LTD
GROWTH MOMENTUM
196

198. MTRCL
EXPANSION
NEW VISION :
• TO BE A WORLD CLASS ENTERPRISE
• GROWING IN HONG KONG & BEYOND
• FOCUSING ON RAIL, PROPERTY &
RELATED BUSINESS
197

199. MTRCL
• NEW MISSION :
• EXCELLENT VALUE FOR CUSTOMERS
• OPPORTUNITIES FOR STAFF
• DEVELOP RAILWAY NETWORK AS
BACKBONE OF PUBLIC TRANSPORT IN
HONG KONG
• GROW IN MAINLAND CHINA & CAPTURE
OPPORTUNITIES IN EUROPE
198

200. MTRCL
• NEW CORE VALUES :
EXCELLENT SERVICE
VALUE CREATION
MUTUAL RESPECT
ENTERPRISING SPIRIT
199

201. HONG KONG BUSINESS
HONG KONG INTERNATIONAL AIRPORT
SUBCONTRACT FOR AUTOMATED PEOPLE
MOVER MIDFIELD CONCOURSE EXTENSION
PROJECT
RESPONSIBLE FOR DESIGN,
PROCUREMENT, INSTALLATION, TESTING &
COMMISSIONING OF SEVERAL RAILWAY
SYSTEMS
200

202. MACAO BUSINESS
MACAO GOVERNMENT
MOU SIGNED FOR LIGHT RAIL
PROJECT CONSULTANCY
201

203. DUBAI
202

204. DUBAI
METRO & AIRPORT LINES
203

205. DUBAI
CONSULTANCY
TO REVIEW DESIGN PROPOSALS IN
RESPECT OF :
OPERATION &
MAINTENANCE
VIADUCT CONSTRUCTION
204

206. DUBAI
CONSULTANCY
MOU SIGNED TO ASSIST TO DEVELOP A
MASS URBAN TRANSPORT SYSTEM,
PROVIDING HIGH QUALITY TRANSPORT
SERVICES
205

207. INDIA
Delhi Airport Metro
Express Line
(AMEL)
• Major engineering &
project management
contract
206

208. UK BUSINESS
BIDS
207

209. UK BUSINESS
LORO (MTR/LAING )
FRANCHISE TO OPERATE
LONDON ORBITAL RAILWAY
(with over 1090 trains a day)
FROM 11 NOVEMBER 2007
FOR 7 YEARS
WITH OPTION FOR 2 FURTHER YEARS SUCCESS
208

210. UK BUSINESS
LOROL (MTR/DEUTSCHE BAHN)
ACTION ON DAY ONE
• OYSTER TICKETING SYSTEM
• NEW TICKETING MACHINES
• STATIONS GATED
209

211. UK BUSINESS
(MTR/DEUTSCHE BAHN)
• IMPROVEMENT IN:
1. SERVICE OPERATION
2. PUNCTUALITY
3. SAFETY
4. SECURITY
• TICKETLESS TRAVEL DOWN
• REVENUE UP
210

212. UK BUSINESS
(MTR/DEUTSCHE BAHN)
PROGRAMME FOR:
• CUSTOMER SERVICE TRAINING
• STATION CLEANING AND REPAIR
• STATION REFURBISHEMENT
• STATION REMODELLING
• NEW EXTENSIONS
211

213. UK BUSINESS
• “….so gradually all suburban rail services in London
can be brought up to the standard of London
Overground.”
Ken Livingstone
Mayor of London
212

214. UK BUSINESS
“London Overground has become a shining example
of how franchises can be run. With the network soon
to orbit our city, the London Overground's next five
years are sure to take the service to new heights.
Congratulations to all those
workers whose hard graft has
made this a success story.”
Boris Johnson
Mayor of London
213

215. UK BUSINESS
(MTR/DEUTSCHE BAHN)
9TH LONDON TRANSPORT AWARDS
 LONDON TRANSPORT OPERATOR OF THE YEAR
(SECOND YEAR IN A ROW)
2012 METRORAIL AWARDS LONDON
 WORLD‟S MOST IMPROVEED METRO
214

216. UK BUSINESS
SHORT-LISTED TO BID FOR:
ESSEX THAMESIDE FRANCHISE
(LONDON FENCHURCH STREET – TILBURY- SOUTHEND)
SEPTEMBER 2012
THAMESLINK FRANCHISE
(BEDFORD – GATWICK - BRIGHTON)
FEBRUARY 2013
215

217. EUROPE BUSINESS
STOCKHOLM UNDERGROUND
TOOK OVER OPERATION 2 NOVEMBER 2009
(FOR 8 YEARS MINIMUM)
216

218. AUSTRALIA BUSINESS
METRO TRAINS MELBOURNE
TOOK OVER OPERATION ON 30 NOVEMBER 2009
(FOR INITIAL PERIOD OF 8 YEARS)
217

219. AUSTRALIA BUSINESS
UNITED GROUP LTD.
SUBCONTRACT TO SUPPORT ITS ROLLING STOCK
MAINTENANCE WORKS IN NEW SOUTH WALES
218

220. CHINA BUSINESS
219

221. CHINA BUSINESS
SHANGHAI
TOGETHER WITH ITS JOINT VENTURE PARTNER,
APPOINTED AS:
 OWNER‟S REPRESENTATIVE TO PROJECT MANAGE
DESIGN AND CONSTRUCTION OF LINE 9
 OWNER‟S ADVISOR OF LINE 8 & LINE 11
220

222. CHINA BUSINESS
BEIJING LINE 4
– INITIALLED IN FEBRUARY 2005
– COMPANY FORMED IN JANUARY 2006
– AGREEMENT SIGNED ON 12 APRIL 2006
221

223. CHINA BUSINESS
BEIJING LINE 4
– PPP
– 30-YEAR CONCESSION AGREEMENT WITH BEIJING
MUNICIPAL GOVERNMENT
– FOR INVESTMENT, CONSTRUCTION & OPERATION
OPENED 28 SEPTEMBER 2009
DAXING LINE
OPENED 30 DECEMBER 2010
222

224. CHINA BUSINESS
SHENZHEN LINE 4
– 30-YEAR BOT PROJECT
– CONCESSION AGREEMENT WITH
SHENZHEN MUNICIPAL GOVERNMENT
– „RAIL + PROPERTY‟
– INITIALLED IN MAY 2005
– PHASE 1 TAKEN OVER 01 JULY 2010
– PHASE 2 OPENED 16 JUNE 2011
223

225. CHINA BUSINESS
HANGZHOU LINE 1
– J.V. AGREEMENT WITH SUBSIDARY
OF HANGZHOU METRO GROUP (PPP)
– INVEST & OPERATE LINE 1 FOR 25
YEARS
– RESPONBLE FOR E&M SYSYTEMS
& ROLLING STOCK
– SINGED IN JULY 2012
– OPERATIONAL ON 24 NOVEMBER
2012
224

226. BUSINESS OUTSIDE HONG KONG
COMPANY SHARE
BEIJING MTR CORPORATION LTD. (BJMTR) 49%
MTR CORPORATION ( SHENZHEN) LTD. (SZMTR) 100%
METRO TRAINS MELBOURNE PTY. LTD. (MTM) 60%
MTR STOCKHOLM AB (MTRS) 100%
TUNNELBANAN TEKNIK STOCKHOLM AB (TBT) 50%
LONDON OVERGROUND RAIL OPERATIONS LTD. (LOROL) 50%
MTR HANGZHOU LINE 1 INVESTMENT CO. LTD. 100%
225

227. CURRENT EXTENSION PROJECTS
226

228. HONG KONG GOVERNMENT
INFRASTRUCTURE INVESTMENT
• 2007-2008 POLICY ADDRESS
ANNOUNCES TEN MAJOR
INFRASTRUCTURE PROJECTS
• ANNUAL EXPENDITURE OF
HK$ 50 BILLION (£ 4 BILLION)
IN COMING YEARS
227

229. HONG KONG GOVERNMENT
INFRASTRUCTURE INVESTMENT
228

230. HONG KONG GOVERNMENT
INFRASTRUCTURE INVESTMENT
• Transport Infrastructure
1. South Island MTR Line
2. The Sha Tin to Central MTR Link
3. The Tuen Mun Western Bypass and Tuen Mun-Chek Lap Kok
Link
• Cross-boundary Infrastructure Projects
4. The Guangzhou-Shenzhen-HK Express Rail Link
5. HK-Shenzhen Airport Co-operation
6. HK-Zhuhai-Macao Bridge
7. HK-Shenzhen Joint Development of the Lok Ma Chau Loop
• New Urban Development Areas
8. West Kowloon Cultural District
9. Kai Tak Development Plan
10. New Development Areas (NDAs) 229

231. RAILWAY EXTENSIONS
230

232. RAILWAY EXTENSIONS
XRL 231

233. RAILWAY EXTENSIONS
WIL 232

234. RAILWAY EXTENSIONS
KTE 233

235. RAILWAY EXTENSIONS
JAY WALDER
CEO
TC CHIEW
PROJECTS DIRECTOR
SCL 234

236. RAILWAY EXTENSIONS
FULLY AUTOMATIC OPERATION
235
SIL(E)

237. RAILWAY EXTENSIONS
EXTENSION PROJECT FUNDING
XRL SERVICE CONCESSION
(GOVERNMENT CAPITAL + MTRCL OPERATIONS)
WIL CAPITAL GRANT
KTE RAIL + PROPERTY
SCL SERVICE CONCESSION
SIL(E) RAIL + PROPERTY
236

238. RAILWAY EXTENSIONS
RAILWAY DEVELOPMENT STRATEGY 2000
237
(UPDATE)

239. RAILWAY BUILDING
238

240. RAILWAY BUILDING
FEASIBILITY
IDENTIFY TRANSPORT NEEDS
FEASIBILITY STUDY
PROPOSAL TO GOVERNMENT
ROUTE PROTECTION
239

241. RAILWAY BUILDING
PRE-CONTRACT
 PREPARATION OF CONTRACT DOCUMENTS
 DESIGN STANDARDS MANUAL
 MATERIALS & WORKMANSHIP SPECIFICATION
 CONDITIONS OF CONTRACT
 BILLS OF QUANTITIES
 APPOINTMENT OF CONSULTANTS
 TENDERING
 CONTRACT AWARD
240

242. RAILWAY BUILDING
CONSTRUCTION
DESIGN MANAGEMENT
CONSTRUCTION MANAGEMENT
PROTECTION OF ADJACENT PROPERTIES
TESTING & COMMISSIONING
APPROVAL BY RAILWAY INSPECTORATE
HANDOVER TO OPERATIONS
241

243. SYSTEM IMPROVEMENT
&
PROTECTION
242

244. LISTENING CORPORATION
IN SERVICE
 IMPROVEMENTS:
 NEW INTEGRATED ENTRANCES
 ENTRANCE UPGRADE
 FACILITIES FOR THE PHYSICALLY IMPAIRED
 RETROFITS - PLATFORM SIDE DOORS
 KIOSKS
 NEW SINGNALLING SYSTEM
 CONDITION MONITORING
 MAINTENANCE
 RAILWAY PROTECTION
243

245. IN SERVICE
INTEGRATED ENTRANCE
244

246. IN SERVICE
OLD ENTRANCE
NEW ENTRANCE
245

247. IN SERVICE
KIOSKS
246

248. IN SERVICE
CHAIRLIFT & TACTILE ROUTES
247

249. IN SERVICE
PSD
248

250. IN SERVICE
SIGNALLING
SOURCE - BOMBARDIER

251. IN SERVICE
RAILWAY PROTECTION
250

252. MTRCL
A STORY
OF
OUTSTANDING SUCCESS
251
KOWLOON BAY HQ BUILDING

253. MTRCL
• PROFITABLE
HK$B
16
14.2
14
Turnover
12
10.7
10
Operating profit
8 8.6 before depreciation
(after property
6 development profit)
Net profit excluding
4 investment property
revaluation
2
0
252

254. MTRCL
253

255. MTRCL
254

256. MTRCL
CONSOLIDATED P & L A/C
(YEAR ENDED 31 December 2011) HK$ M
• REVENUE 33,423
• PROFIT ON PROPERTY DEVELOPMENTS 4,900
• OPERATING PROFIT BEFORE DEPRECIATION 17,038
• NET PROFIT ATTRIBUTABLE TO SHAREHOLDERS 14,716
255

257. MTRCL
AS AT END 2011:
PATRONAGE ( million)
Yearly 1,644
Daily 4.7
256

258. MTRCL
HONG KONG PEOPLE
ENGINEERS MTR STAFF
HAVE REASON TO BE PROUD
257

259. IN THE EYES
of the
BBC
19 APRIL 2006 258

260. RECAP
259

261. STORY OF THE HKMTR
260

262. STORY OF THE HKMTR
STORY OF HONG KONG IN THE
FINAL DECADES OF LAST CENTURY
261

263. STORY OF THE HKMTR
STORY OF HONG KONG IN THE
FINAL DECADES OF LAST CENTURY
STORY OF 23 YEARS OF MY LIFE
262

264. This presentation is dedicated to :
All my friends
Especially those of the MTR
263

265. This presentation is dedicated to :
and to:
The Hong Kong Technical College
(now The Hong Kong Polytechnic University)
For helping me to lay the foundation for
my engineering career
264

266. 265